The Experts On Banking

"Banks lend by creating credit. They create the means of payment out of nothing."

RALPH M. HAWTREY

Asst. Secretary of the British Treasury.

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"The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banks in fact are able to create and cancel modern deposit money. They can in fact inflate, mint and unmint, the modern ledger-entry currency."

MAJOR L. L. B. ANGAS

"Slump Ahead in Bonds"

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ROBERT H. HEMPHILL, former credit manager of the Federal Reserve Bank, of Atlanta, says in the foreword of Irving Fisher's book "100% Money".

"If all bank loans were paid, no one would have a bank deposit, and there would not be a dollar of currency or coin in circulation. This is a staggering thought. We are completely dependent on the commercial banks. Some one has to borrow every dollar we have in circulation, cash or credit. If the banks create ample SYNTHETIC MONEY, we are prosperous; if not, we starve! We are absolutely without a permanent monetary system. When one gets a complete grasp upon the picture, the tragic absurdity of our hopeless position is almost incredible — but there it is. It (the banking problem) is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it is widely understood and the defects remedied very soon."

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Mr. ECCLES, formerly head of the Federal Reserve Board, wrote in Collier's June 8, 1935:

"The banks can create and destroy money. Bank credit is money. It's the money we do most of our business with, not with that currency which we usually think of as money."

Quotation from a letter written by the Rothschild. Brothers, of London, England, to a New York firm of bankers under date of June 25, 1863. The Rothschilds were considering the possibility of taking advantage of the banking act which had just been passed by Congress.

"The few who can understand the system (check money and credits) will either be so interested in its profits, or so dependent on its favors, that there will be no opposition from that class; while on the other hand, THE GREAT BODY OF THE PEOPLE, MENTALLY INCAPABLE OF COMPREHENDING THE TREMENDOUS ADVANTAGE THAT CAPITAL DERIVES FROM THE SYSTEM, WILL BEAR ITS BURDENS WITHOUT COMPLAINT, AND PERHAPS WITHOUT EVEN SUSPECTING THAT THE SYSTEM IS INIMICAL TO THEIR INTERESTS."

The late HON. CHARLES A. LINDBERGH, SR., of Minnesota, in his, book,'The Economic Pinch" writing of the panic of 1920, says: "Under the Federal Reserve Act panics are scientifically created; the present panic is the first scientifically created one, worked out as we figure a mathematical problem."

Here is what SALMON. P. CHASE, Secretary under Abraham Lincoln said: "My agency in procuring the passage of the National Bank Act was the greatest financial mistake of my life. It has built up a monopoly that effects every interest in this country. It should be repealed. But before this can be accomplished the people will be arrayed on one side, and the banks on the other, in a contest such as we have never seen before in this country."

ABRAHAM LINCOLN feared the bankers' powers, as shown in what is commonly known as the Lincoln Prophecy, which reads:

"I see in the near future a crisis arising that unnerves me and causes me to tremble for the safety of my country. As a result of the war, corporations have been enthroned, and an era of corruption in high places will follow until all of liberty shall be lost and the Republic destroyed. God grant that my fears may prove groundless."

"Whoever controls the volume of money in any country is absolute master of all industry and commerce." JAMES A. GARFIELD